Fiscal Policy: Defence Spending

Lord Lamont of Lerwick Excerpts

Monday 3rd February 2025 Lords Chamber

[Lord Coaker (Lab)]

I congratulate my noble friend on winning the debate at Cambridge; I meant to say that earlier. He makes a point about additional money, and there will be a debate about the overall level. I know my noble friend has his views about the level of defence expenditure. He will know that the Government will set out a pathway to 2.5% in the spring. As part of our increased defence expenditure, we will spend £3 billion extra in the next financial year. Of course, alongside all that, he makes the really important point—again, I have made it from the Dispatch Box—that part of the way you prevent war is by preparing for war. That is an unfortunate state of affairs. Deterrence is important. As a country and in our alliances across the world, we need to consider not only how we fight wars but how we prevent them, and deterrence has to be part of that.

[Lord Lamont of Lerwick (Con)]

The noble Lord explained what the Government are doing to compensate service personnel who might be penalised by the VAT increase. Exactly the same problem arises with diplomats, who, again, necessarily have no choice except to educate their children privately. What are the Government doing to compensate people working in the FCDO?

[Lord Coaker (Lab)]

I will have to write to the noble Lord about that to make sure that I do not inadvertently misinform the House. If he will allow me, I will write to him with a specific answer to that and place a copy in the Library.